Saudi Aramco Explores Sulphur Business Stake Sale to Raise Billions

Saudi Aramco is exploring the sale of a stake in its sulphur business as part of a broader strategy to unlock value from its infrastructure assets and generate billions of dollars in fresh capital, according to sources familiar with the matter.

The potential transaction, internally known as Project Yellowstone, could raise up to $7 billion, with Aramco reportedly inviting banks to submit proposals for the deal last month. The planned sale focuses on sulphur storage and export terminal assets, although the company is still reviewing which facilities may be included. Sources indicated that the transaction is unlikely to launch before next year.

The move aligns with Saudi Arabia’s efforts to attract outside investment and support the kingdom’s economic diversification plans. As the country’s largest revenue generator, Saudi Aramco plays a key role in funding government initiatives through dividends and royalties.

Sulphur is produced as a byproduct during natural gas processing when hydrogen sulphide is removed to prepare gas for export. Aramco is one of the largest sulphur exporters in the Gulf and Red Sea regions through its trading operations.

Beyond the sulphur business sale, Aramco is evaluating several other infrastructure monetization opportunities. Sources said the energy giant is considering a transaction involving its oil export terminals, with assets potentially valued at up to $25 billion. However, the company is reportedly waiting for regional geopolitical conditions to stabilize before moving forward.

Aramco is also reviewing its extensive real estate holdings, including its headquarters campus, which sources estimate could be worth around $10 billion. Additionally, the company may seek to raise approximately $500 million through the sale of water and wastewater infrastructure assets tied to its oil operations under a project known as Project Hydro.

The company has already demonstrated its willingness to monetize infrastructure assets. Last year, Aramco completed an $11 billion lease-and-leaseback agreement related to the Jafurah gas processing facilities, a major component of its $100 billion natural gas expansion strategy.

Reuters previously reported that Saudi Aramco is also pursuing the sale of gas-fired power plants valued at more than $4 billion, highlighting the company’s continued focus on asset optimization, cost reduction, and capital generation.